When hiring your first employee, there are certain legal and financial requirements you must consider. Make sure you’re prepared for this next big move by learning your basic responsibilities as an employer.
Several laws in Australia govern employment and industrial relations. As a first-time employer, it’s important to be familiar with these legislations, and which ones will apply to you.
The type of employee you will hire determines your obligations as an employer. Employees in Australia are usually classified as:
To know which of them fits your needs, it’s important to assess your business first. List down the tasks needed to fulfill, the skills needed, and the number of hours required daily or weekly.
It’s necessary to be financially ready before hiring your first employee. As an employer, it’s important to prepare a budget for:
According to research, the average cost of hiring an employee is $18,982. Two of the major factors affecting these figures are role and seniority. For example, hiring for an entry-level position costs around $9,772 while for an executive role, it can reach up to $34,400.
To reduce these costs, consider these tips for hiring your first employee:
This 2021, the national minimum wage for a full-time employee is $19.84 per hour or $753.80 per week. However, it can still change depending on the employment type, industry, and position. It’s also possible to incur additional costs on allowances, overtime pay, and super.
As governed by the Fair Work Act 2009, you must pay your employee weekly, fortnightly, or monthly through cash, cheque, or bank transfer. In-kind payments are strictly prohibited.
Aside from recruitment and wages, you may also prepare for additional expenses in training, in procuring new equipment for your new employee, or in developing safe systems of work (see WHS).
Need an extra hand in your business without worrying too much about recruitment and admin costs? Try outsourcing.
Some of the documents and records you need to prepare are the following:
Employees are important business assets. You can leverage their skills, expertise, and time to manage tasks you cannot handle anymore. Instead of crunching numbers and doing other manual jobs, you can focus more on strategizing your next business moves and improving your product and service offerings.
Do you need help in managing your finances? D&V Philippines can help you find the right talent. Contact us today or read our whitepaper, D&V Philippines: Your Talent Sourcing Partner.